Volkswagen to pay nearly $13.8b to US regulators for emissions cheating scandal

 A Volkswagen logo is seen on a car's front at a scrapyard in Fuerstenfeldbruck, Germany.
A Volkswagen logo is seen on a car's front at a scrapyard in Fuerstenfeldbruck, Germany.PHOTO: REUTERS

NEW YORK (Reuters) - Volkswagen will pay nearly US$10.3 billion (S$13.8 billion) to settle claims stemming from its diesel emissions cheating scandal with United States regulators, a source briefed on the agreement said on Thursday.

The settlement includes offers to buyback nearly 500,000 polluting US vehicles and to set aside billions of dollars for green energy projects and a program to offset excess diesel pollution, the source said.

Speaking on condition of anonymity, due to court-imposed gag rules, the source told Reuters the average compensation to owners was around US$5,000. The settlement is currently valued at US$10.287 billion in some settlement documents, the source added, saying final numbers could change before a Tuesday court deadline.

Volkswagen and the US Environmental Protection Agency declined to comment.

There may be additional costs to VW disclosed on Tuesday, beyond the US$10.3 billion figure, sources familiar with the matter said.